RESIDENTIAL PROPERTY BILL

Order for Third Reading read.

4.20 p.m.

Mr Speaker: Notice has been given by the Minister for Law and the Environment that he wishes to propose amendments to causes 2. 8. 9. 10, 22 and 30 of the Bill.

The Bill accordingly stands recommitted to a Committee of the whole Parliament in respect of these clauses.

Any other Member who wishes to propose other amendments or new clauses or schedules is required to give notice of his desire before Parliament resolves itself into a Committee on the recommitted matters.

No other Member giving notice -

Mr Speaker: Committee stage, what day?

The Minister for Law and the Environment (Mr E. W. Barker): Now, Sir.

Bill considered in Committee.

[Mr Speaker in the Chair]

4.22 p.m.

Clause 2 -

Mr Barker: Sir, I beg to move,

In page 7, line 28, after "floor", to insert -

"or any estate or interest in any flat or dwelling-house shown as a unit in an approved plan bearing the title "Condominium" and issued by the competent authority under the Planning Act".

This amendment to sub-clause (3) of clause 2 seeks to place flats and dwelling-houses in condominiums in the same position as flats in buildings containing six or more storeys so that this Act will not apply to all these types of habitation. Multi-storey development has become a feature of the Singapore scene, but it is desirable that we encourage the erection of not only high-rise but also low-rise buildings in the same complex in order to stimulate a balanced and attractive development.

"Flat" and "dwelling-house" are defined in the Bill at clause 2(1), page 3.

Amendment agreed to.

Clause 2, as amended, ordered to stand part of the Bill.

Clause 8 -

Mr Barker: Sir, I beg to move,

In page 21, line 29, to leave Out "September", and insert "July".

In page 21, line 30, to leave Out "1976", and insert "1977".

Owing to the lapse of time in the enactment of the Bill, the dates in three procedural clauses require to be amended. In sub-clause (4) of clause 8, particulars of the citizenship status of members and directors of Singapore companies are required to be filed with the Controller of Residential Property on or before "the 1st day of September of each year (as from 1976)". This date is being amended to "the 1st day of July of each year (as from 1977)".

Amendments agreed to.

Clause 8, as amended, ordered to stand part of the Bill.

Clause 9 -

Mr Barker: Sir, I beg to move.

In page 23, line 2, to leave Out "September", and insert "July".

In page 23, line 3, to leave out "1976", and insert "1977".

An identical change in the date is being made in sub-clause (4) of clause 9 in respect of particulars to be furnished of the citizenship status of the members and trustees of Singapore societies.

Amendments agreed to.

Clause 9, as amended, ordered to stand part of the Bill.

Clause 10 -

Mr Barker: Sir, I beg to move,

In page 23, line 18, to leave Out "11th day of September, 1976" and insert "1st day of July. 1977".

In this clause, the requirement is that in every instrument of transfer of land lodged with the Registrar of Titles on or after 11th September, 1976, the citizenship status and other particulars of the purchaser, or if the purchaser is a body corporate, the place of registration or incorporation of the body corporate, shall be specified. This date is also being amended to the 1St day of July, 1977.

Amendment agreed to.

Clause 10, as amended, ordered to stand part of the Bill.

Clause 22 -

Mr Barker: Sir, I beg to move,

In page 35, to leave Out lines 10 to 15 inclusive, and insert a new sub-clause (2)* as set Out in the Notice of amendments.

Sub-clause (2) of this clause introduced by the Select Committee has been amplified to the advantage of foreign companies. A special power to exempt is given to the Minister (subject to such conditions as he may consider necessary) where a foreign company is able to satisfy him that more than

*New sub-clause (2) reads as follows: "(2) Notwithstanding anything contained in this Act, where a foreign company is able to satisfy the Minister that more than fifty per cent of the total voting rights attributable to the share capital of such foreign company is held by - (a) members who are citizens; or Cap. 141. (b) members who are "resident in Singapore" within the meaning of the Income Tax Act and who pay the tax imposed under that Act; or (c) members mentioned in both paragraphs (a) and (b) of this subsection. the Minister may. by notification in the Gazette and subject to such conditions as he, may consider necessary, exempt such foreign company from all or any of the provisions of this Act". 50% of its share capital is held either by members who are citizens or by members resident in Singapore who pay Singapore income tax, or by both such categories of persons, that is, citizens and tax-paying residents.

The amended sub-clause represents a more liberal approach to the exemption of foreign companies than at present in the Bill. Thus -

(a) the percentage shareholding held by citizens (and taxpaying residents) in foreign companies to qualify for an exemption is reduced from 80% to 50% in the amendment now proposed; and

(b) the required percentage need not be held exclusively by citizens, but may be held by citizens or taxpaying residents or by both citizens and taxpaying residents in order to arrive at the "more than 50 per cent" or majority criterion.

Amendment agreed to,

Clause 22, as amended, ordered to stand part of the Bill.

Clause 30 -

Mr Barker: Sir, I beg to move,

In page 38, line 24, after "thereof." to insert "and arising from, relating to or connected with residential property.".

This is a purely phraseological amendment which is being made for the purpose of added clarity.

Amendment agreed to.

Amendments made:

In page 38, line 28, after "thing", to insert ", arising from, relating to or connected with residential property.-[Mr E. W. Barker]

In page 38, line 36, after "otherwise", to insert arising from, relating to or connected with residential property.".-[Mr E. W. Barker]

Clause 30, as amended, ordered to stand part of the Bill.

Bill reported with amendments.

Third Reading

Mr Speaker: Third Reading, what day?

Mr Barker: Now. Sir, I beg to move. "That the Bill be now read a Third time."

Sir, the Select Committee on this Bill received 1 5 written representations and heard 13 representors. Some of the contributions were valuable and a number of suggestions have been accepted.

The Report of the Select Committee was presented to this House on 5th May, 1976, as Paper ParI. 2 of 1976. The Bill, as set out at Appendix I of the Report, incorporates the amendments made by the Select Committee. I shall not burden the House with explanations in respect of all the amendments so made, as these are contained at Appendix V. Explanations have also been given in the Committee of this House for the necessity to amend further certain provisions of the Bill as submitted by the Select Committee.

I wish, however, to emphasise the fact that this legislation is concerned only with residential property and that industrial and commercial real estate as well as residential flats in buildings of six or more storeys, and units in approved condominiums which are not subject to any restriction, may be freely purchased and sold by citizens and non-citizens alike.

Foreign companies are now to be given 10 years from 11th September 1973 to dispose of their residential properties except in cases where specific approval to retain such properties has been granted by the Minister. However. foreign natural persons or societies owning residential properties as at 11th September, 1973 will not be required to dispose of such properties; this is specifically provided for in clause 6.

The period of sale by legal personal representatives of residential properties belonging to deceased persons who died on or after 11th September, 1973, where the beneficiaries are foreign persons, has been extended to ten years, instead of five years, from the date of the death of the deceased persons.

The established procedure to facilitate foreigners in seeking approvals for the purchase of residential properties will continue to apply to permanent residents as well as other foreigners. Applications from those making an economic contribution to Singapore or those with special merit will be favourably considered by the Minister. However, approvals granted will be subject to the limitation of one residential unit of land not exceeding 15.000 sq, ft, to be used only for the occupation of the applicant and his family. Foreign companies which are of economic benefit to Singapore will be allowed to purchase or acquire and retain residential properties for the occupation of their chief executives. Such approvals, however, will be subject to reasonable limits on the number of such executives and the area of land for each residence.

Though this Bill will take effect retrospectively from the 11th day of September 1973, the penalties by way of a fine or imprisonment imposed for offences under the Bill are not to be made retrospective before the appointed day. This is as it should be.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Third time and passed.